Which of the following represents a problem in measuring inequality?
a. Measurements of income distributions typically include in-kind transfers, which distort the measure of inequality.
b. A normal life-cycle pattern causes inequality in the income distribution but may not reflect inequality in living standards.
c. Transitory income is a better measure of inequality than permanent income.
d. Both a and b are correct.
b
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In the long run, in a perfectly competitive industry:
A. economic loss tends to persist. B. the number of firms in the industry will increase. C. economic profit tends to persist. D. economic profit and loss are driven to zero by entry and exit.
A government budget deficit will have a:
a. positive effect on public saving causing a rightward shift in the supply of loanable funds. b. positive effect on public saving causing a leftward shift in the supply of loanable funds. c. negative effect on public saving causing a rightward shift in the supply of loanable funds. d. negative effect on public saving causing a leftward shift in the supply of loanable funds.
Whether an excise tax is imposed on a demander or supplier is irrelevant because
a. in either case the price that the demander has to pay will decrease; while the price the supplier receives will increase b. in either case the price that the demander has to pay will increase; while the price the supplier receives will decrease c. either situation will create excess demand d. either situation will create excess supply e. none of these are correct
When the U.S. real exchange rate appreciates, U.S. goods become
a. more attractive to consumers in the U.S. and abroad. b. more attractive to consumers in the U.S. and less attractive to consumers abroad. c. less attractive to consumers in the U.S. and abroad. d. less attractive to consumers in the U.S. and more attractive to consumers abroad.